The region is seeing rapidly intensifying competition, industry board says
The Greater Toronto Area’s average rent has reached a new high in Q2 amid intensified competition, according to the region’s real estate industry association.
Double-digit annual increases have pushed up rents for one-bedroom units by 20.2% to $2,269. During the same period, the average two-bedroom unit in the region saw its rent increase by 15.3% to $2,979.
“Competition between renters continues to heat up, resulting in extremely strong upward pressure on average rents,” said Jason Mercer, chief market analyst at TRREB. “Rental supply remains a major issue in the GTA and will become more pronounced in the short term, as an increasing share of well-employed individuals turn to the rental market.”
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Across the GTA, a total of 13,203 condo apartment rental transactions took place during the second quarter, down by 11.4% year over year. The main driver of the slowdown was a pronounced decline in the number of rental listings, down by nearly 30%.
“Expect rental market conditions to tighten further in the coming months,” said Kevin Crigger, president of TRREB. “Higher borrowing costs may have temporarily precluded home buying for some households, but the GTA population continues to grow alongside a booming regional economy. This means that an increasing number of people requiring a place to live will turn to the rental market.”
